Report of the Head of Finance (attached)

This report concerns the performance of the treasury management function for the period April to September 2012, and outlines the investment strategy for the remainder of the financial year.

Recommendations

The Board is asked to:-

(1)               Note the performance of the treasury management function for the first six months of 2012/13, and;

(2)               Agree the Investment Strategy for the remainder of 2012/13 and the continuation of the operational strategy as highlighted in paragraph 37.

The Head of Finance submitted a report (previously circulated, now appended) that reported the performance of the treasury management function for the period April to September 2012, and outlined the investment strategy for the remainder to the financial year.

The Finance and Performance Panel had submitted comments. The Board Member and Director comments in response are attached as an appendix to this agenda.

Jackie Yates, Executive Director, Finance, added that it was not clear, in the recommendations from scrutiny what type of “local investments” the panel had in mind. Investing to ensure a decent return was difficult at present.

City Executive Board noted the comments from the Finance and Performance Panel and the responses given.

Resolved to:-

(1)   Note the performance of the treasury management function for the first six months of 2012/13;

(2)   Agree the Investment Strategy for the remainder of 2012/13 and the continuation of the operational strategy as highlighted in paragraph 37 of the report.